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Apple rout deepens after Qualcomm wins partial ban on iPhone sales in Germany

The ongoing patent infringement litigation between Apple (AAPL) and Qualcomm (QCOM) took a new turn this week after the latter won another case, securing a ban on the sale of some older versions of iPhone in the German market. The feud, which started after Apple shunned Qualcomm and diverted its microprocessor orders to Intel (INTC), seems to be taking a toll on the fortunes of both the companies.

After the German court issued an injunction order in favor of Qualcomm, in one of the many lawsuits filed by the companies against each other, Apple confirmed it will withdraw some of the iPhone models from its stores in Germany.

The setback comes on the heels of Apple losing a case in China for allegedly using a combination of third-party chips and parts in iPhone, in violation of Qualcomm’s patents called ‘envelope tracking.’ Currently, the tech giant is facing a partial ban on the sale of iPhone in the Chinese market.

After a German court issued the injunction order, Apple confirmed it will withdraw some of the iPhone models from its stores in Germany

Dismissing the case as Qualcomm’s “tactics to disrupt innovation,” Apple’s management said it will appeal the ruling by the German court. The observation was backed by Intel, which supplies advanced chips for certain iPhone models.

Pursuant to the ban, which is limited to the outlets owned by Apple, iPhone 7 and iPhone 8 will soon disappear from the stores operating in Germany. While the other variants of the smartphone will be sold in the Apple stores, third-party stores will continue to sell all the models.

Apple has grand expansion plans for the US

While issuing the order, the Munich court said, “The ruling effectively outlaws the offering and placing on the market of the finished product in Germany, including the sale. The iPhones 7plus, 7, 8, 8plus and X are affected.”

Apple’s stock dropped sharply Thursday afternoon and closed the session down 3%, extending the downfall that started last month amid concerns of the faltering iPhone sales.

Having secured favorable rulings from two important courts in separate regions, Qualcomm’s efforts to safeguard its patented technologies got a major boost. The cases are linked to a lawsuit filed by Apple several months ago claiming that Qualcomm tried to monopolize its modem processors through anti-competitive practices.

 

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